$3.17M Bitcoin Options Bet Hinges on $95,000 Target
- A reported Bitcoin options position was established at a cost of $3.17 million.
- The highest payout occurs if Bitcoin’s price is exactly $95,000 at the expiry date.
- If Bitcoin’s price reaches or exceeds $100,000, the initial payment could be wiped out.
- The options strategy used is a “long call butterfly,” involving call options at $90,000, $95,000, and $100,000.
This multimillion-dollar bet on Bitcoin involves a complex options strategy where the optimal outcome is a price of $95,000 by October’s end. The trade could result in losses if Bitcoin exceeds this target significantly.
The position highlights the risks involved in such trades—where even a correct prediction of a price rally can lead to financial loss if it surpasses the intended range. (Source)
